BUSINESS BRIEFS
Homebuilders' confidence drops to all-time low
Associated Press
LOS ANGELES — Homebuilders' confidence in a near-term housing recovery sank to an all-time low this month, reflecting growing worries over the U.S. financial crisis, rising unemployment and weakening consumer confidence, an industry trade association said yesterday.
The National Association of Home Builders/Wells Fargo housing market index, started in January 1985, tumbled five points to nine in November. The index stood at 14 in October after slipping three points from September.
Index readings higher than 50 indicate positive sentiment about the market. But the index has drifted below 50 since May 2006 and below 20 since April.
GAS PRICES FALL FURTHER THAN EVER
COLUMBUS, Ohio — Oil prices continued to fall yesterday, and a government report showed that gasoline prices in October plunged further than they ever have. Home heating oil, natural gas and liquefied petroleum gas also fell substantially.
Light, sweet crude for December delivery fell 56 cents to settle at $54.39 a barrel on the New York Mercantile Exchange.
But there were signs that plummeting gas prices have begun to bring American motorists back to the pump. Americans used about 100,000 more barrels per day of gas for the week than they did the previous week, according to a MasterCard SpendingPulse report.
Oil markets had little reaction to the seizure by pirates of a Saudi supertanker loaded with $100 million in crude oil. Yesterday the ship was anchored within sight of impoverished Somali fishing villages.
AT HOME DEPOT, IT'S ALL RELATIVE
CHICAGO — Home Depot Inc. gave investors a welcome surprise yesterday, posting a better-than-expected third-quarter profit and offering Wall Street a second straight day of good news for the battered home improvement sector.
But the 31 percent drop in earnings still shows just how badly the chain has been pummeled by the economic meltdown — which executives warned was unlikely to abate anytime soon as they predicted a steeper drop in full-year sales.
"This is a difficult environment," Chief Executive Frank Blake said. "The view we had at the start of the quarter, that we might be nearing the bottom ... gave way to the financial crisis in September and beyond."
Home Depot shares climbed 71 cents, or 3.6 percent, to $20.71 yesterday. The company's shares rose another 4 cents in after-hours trading.
HP SAYS IT WILL BEAT EXPECTATIONS
NEW YORK — Hewlett-Packard Co. surprised Wall Street yesterday by saying its earnings will be slightly above analysts' expectations, going against the grain as other tech bellwethers have slashed forecasts and posted weak results in the sagging economy. Its shares climbed more than 14 percent.
The Palo Alto, Calif.-based computer and printer maker expects earnings of 84 cents per share and adjusted earnings of $1.03 per share for the three months ended in October. This is slightly better than the $1 per share, excluding items, that analysts polled by Thomson Reuters are expecting.
Hewlett-Packard forecast revenue of $33.6 million, just ahead of analysts' expectations of $33.09 billion.
Shares rose $4.25, or 14.5 percent, to close at $33.59 yesterday
